Trucking Liability This is the coverage that is required by the FMCSA or DOT in order for you to conduct business on public highways. The FMCSA requires proof of Financial Responsibility in the amount of $750,000 (in most cases of trucking for hire). However, most brokers and shippers will require you to carry minimum auto liability limit of $1,000,000. Be sure to get the proper quote when making insurance purchase decisions.
Cargo Limits This is the maximum amount the insurer will cover in case your load gets stolen or damaged. The limits required and price for it can vary greatly depending on the type of loads you carry – autos requiring higher limits and being more expensive than lumber. In general, most brokers will require you to carry the customary $100,000 limit with $1,000 deductible. For car carrier, the limits are usually higher, starting at $150,000. Most insurance agents can bump these limits on a short notice or can find you trip cargo insurance if you contract a higher value load.
Cargo Deductible info
Trailer Interchange If you are pulling someone else’s trailer (or leasing short term), they will most likely ask you to carry this coverage in case you damage their trailer. This is sometimes also referred to as Non-owned trailer coverage. The usual limits are $30,000 (+/- 10K). In order for this coverage to be valid, you will need a Trailer Interchange Agreement with the shipper or broker.
Reefer Breakdown This cargo supplemental coverage is required by brokers for loads that require refrigeration. It only covers damage to the cargo in case the refrigeration unit malfunctions. It does not cover damage based on user error. So, if the driver forgets to set the temperature control to the level required by the shipper and the load spoils, then the damages are not covered. They will be covered is the refrigeration unit breaks down and causes the damage.
General Liability This is a coverage that more and more brokers and shippers require truckers to carry. It is a blanket liability coverage for a variety of cases where other major coverages do not apply (auto liability and workers comp for example). If a visitor slips and falls and gets injured in your office, if your employee/driver injures someone while not driving, if you are renting an office and your computer burns down the whole building, these are cases that General Liability will cover. The limit is usually quoted at 1 million. Costs can vary between $500 and $1,500 per year. Ask your agent for more detailed explanation of what Truckers General Liability covers and what factors influence the cost of such coverage.